Weakening of Yen has caused a drop in prices of camera?

[Jedi]

Prices of grey set cameras from our favourite stores have tumbled. Not sure whether it has to do with the falling YEN. Anyway, it is good news to the buyers.

Of course, it is a grey set with 12 months shop warranty. But isn't it better than a 2nd hand set without warranty? :think:

On the other hand, local Canon agent sets remain high as prices are controlled by Canon Singapore.

 

[ricohflex]

Weak ¥ is supposed to make Japanese products more attractive to foreign buyers.

That is the whole idea of Abenomics and massive printing of money.

If Singapore branches of camera manufacturers prop up a high price to local buyers, then they are defeating the plan to stimulate Japan's economy to get out of the 20 year deflation downward spiral. In effect they are sabotaging Shinzo Abe and making sure he fails as PM.

Japan had 7 PMs in 6 years. It is a revolving door. Next PM, please.

 

[Rashkae]

Weak ¥ is supposed to make Japanese products more attractive to foreign buyers.

That is the whole idea of Abenomics and massive printing of money.

If Singapore branches of camera manufacturers prop up a high price to local buyers, then they are defeating the plan to stimulate Japan's economy to get out of the 20 year deflation downward spiral. In effect they are sabotaging Shinzo Abe and making sure he fails as PM.

Japan had 7 PMs in 6 years. It is a revolving door. Next PM, please.

*beeeeep* economics fail.

If the shops abroad *reduce* prices due to a weaker yen, then the Japanese companies receive *less* foreign income. This means they don't gain.

The weak yen means companies can *earn* more yen by maintaining the foreign price. This is the *correct* thing to do for Japanese economy. Thus your argument shows zero understanding of how forex works in terms of benefitting the Japanese companies.

The weak yen will make it.more attractive to foreign buyers *in japan* and also boost tourism to Japan.

it's usually just greedy, tunnel-vision people who think the world owes them the cheapest price.

 

[kei1309]

Cheaper Cost of Manufacturing does not translate to a drop in price. it does translate however to the LOWER cost of (hear this) Made-in-Japan goods. however, as most of the goods are chiefly made in other countries namely China, Thailand and Malaysia, i don't see the point of your argument. in fact, while the YEN is losing to the US Dollar, the Yuan and Baht are both gaining on the USD, with the Ringgit fluctuating a little...

so that actually means that due to "higher costs of operations, manufacturing and shipping" in those countries, your cameras should cost more, because now the Yen is weaker against those currencies.

however, that's only taken place in the past few weeks. the cost of the cameras now in the warehouse inventories and on the shelves are all tied to previous manufacturing costs (i presume), and therefore their Suggested Retail Price. if there were a price reduction, i would feel that it's more due to dumping of stocks because a new camera is coming out, or because the current models have reach the end of their product life cycle.

you can't just assume that because it's a Japanese Company pumping out the products, that because the Yen is depreciating, costs will fall.

and lastly, of course you can't just base it on one channel of sales. if grey goods are coming down, it doesn't mean that the price of cameras will come down as a whole.

but heck. i'm just a simple barista. what do i know. Rashkae knows more

 

[ManWearPants]

Prices of grey set cameras from our favourite stores have tumbled. Not sure whether it has to do with the falling YEN. Anyway, it is good news to the buyers.

Of course, it is a grey set with 12 months shop warranty. But isn't it better than a 2nd hand set without warranty? :think:

On the other hand, local Canon agent sets remain high as prices are controlled by Canon Singapore.

At least quote an example.

 

[Zeisser]

Local grey or not prices will not be affected. Just a pipe dream or chinese saying 'wait long long'

 

[trd2970]

I think the jpy reasoning still stands as TS is talking about grey sets which could be bought direct or indirect from suppliers in japan.

Weakening of the jpy is not meant to bring in higher jpy while maintaining foreign prices, but is more meant to increase sales and be more price competitive against international exporters eg koreans and local players in respective export markets.

 

[starboard]

*beeeeep* economics fail.

If the shops abroad *reduce* prices due to a weaker yen, then the Japanese companies receive *less* foreign income. This means they don't gain.

The weak yen means companies can *earn* more yen by maintaining the foreign price. This is the *correct* thing to do for Japanese economy. Thus your argument shows zero understanding of how forex works in terms of benefitting the Japanese companies.

The weak yen will make it.more attractive to foreign buyers *in japan* and also boost tourism to Japan.

it's usually just greedy, tunnel-vision people who think the world owes them the cheapest price.

Your analysis is partially true.

First, international trade is conducted is US$ that is why forex is based with the US$. Looking from the japanese point of view, the manufacturer of say, lens, has its cost structure in Yen. Because it is in Japan, only japanese yen matters to him. No body in Japan cares about US$ or korean won. Now the Japanese want to sell a lens at Yen10,000.People in Japan pays Yen 10,000 the manufacturer receives the amount in Yen.

Now a foreigner who wants the lens will need to buy japanese yen to pay the seller who only want yen. Assuming (the exchange rate here is for illustration only) at an exchange rate of US$1 to Y200 the foreigner will need US$50 to buy Yen10,000 to pay for the lens. When the yen weakens to say USD1 to Yen250 the foreigner will need US$40 to pay for the same lens. The result is that the japanese still receives his Y10,000 for the lens, but foreigners pay less. Therefore it is cheaper to buy japanese product when japanese weakens i.e prices must fall.

Secondly, when a country weakens its currency it is hoped that a decrease in price (through elasticity of demand) will induce a large increase in demand from other countries..but this is not our concern.

My conclusion is prices will fall with a weaken yen. It is a matter of time.

 

[ManWearPants]

The funny thing is with the strong SGD against many currencies, prices don't fall.

 

[Rashkae]

Now a foreigner who wants the lens will need to buy japanese yen to pay the seller who only want yen. Assuming (the exchange rate here is for illustration only) at an exchange rate of US$1 to Y200 the foreigner will need US$50 to buy Yen10,000 to pay for the lens. When the yen weakens to say USD1 to Yen250 the foreigner will need US$40 to pay for the same lens. The result is that the japanese still receives his Y10,000 for the lens, but foreigners pay less. Therefore it is cheaper to buy japanese product when japanese weakens i.e prices must fall.

Your analysis is only partially true. To a Japanese company, Yen is what matters. Your example only covers *domestic* purchases of goods.

For international purchases, exporters greatly benefit from a weaker currency. Let's say we use.the exchange rate of $1:100¥ for the example. A lens costs $1000 (merchant price,let's ignore the shop markup) in the USA, so the Japanese company gets ¥100,000 yen. Now the yen weakens to $1:125¥. By maintaining the price abroad, the company now gets ¥125,000.

That is why it is entirely in their interest to maintain the international restocking price whichnis in usd especially when the yen weakens.

 

[Rashkae]

The funny thing is with the strong SGD against many currencies, prices don't fall.

Because we import everything. If the source countries also had a strengthening currency, they earn the same. If their currency weakened against sgd, they are laughing all the way to the bank.

 

[candycaine]

Secondly, when a country weakens its currency it is hoped that a decrease in price (through elasticity of demand) will induce a large increase in demand from other countries..but this is not our concern.

Your analysis is partially true. (This seems to be the catchphrase of the thread, eh.)

If you decrease price, that will under no circumstances induce a large increase in demand. The term you should be using is quantity demanded.

 

[starboard]

Your analysis is partially true. (This seems to be the catchphrase of the thread, eh.)

If you decrease price, that will under no circumstances induce a large increase in demand. The term you should be using is quantity demanded.

Agreed. I was not careful with the choice of word. It is movement along the curve rather than outward shift of the demand curve as my statement meant. There is no basis for the outward shift. Thanks for pointing that out.

 

[daredevil123]

Your analysis is partially true.

First, international trade is conducted is US$ that is why forex is based with the US$. Looking from the japanese point of view, the manufacturer of say, lens, has its cost structure in Yen. Because it is in Japan, only japanese yen matters to him. No body in Japan cares about US$ or korean won. Now the Japanese want to sell a lens at Yen10,000.People in Japan pays Yen 10,000 the manufacturer receives the amount in Yen.

Now a foreigner who wants the lens will need to buy japanese yen to pay the seller who only want yen. Assuming (the exchange rate here is for illustration only) at an exchange rate of US$1 to Y200 the foreigner will need US$50 to buy Yen10,000 to pay for the lens. When the yen weakens to say USD1 to Yen250 the foreigner will need US$40 to pay for the same lens. The result is that the japanese still receives his Y10,000 for the lens, but foreigners pay less. Therefore it is cheaper to buy japanese product when japanese weakens i.e prices must fall.

Secondly, when a country weakens its currency it is hoped that a decrease in price (through elasticity of demand) will induce a large increase in demand from other countries..but this is not our concern.

My conclusion is prices will fall with a weaken yen. It is a matter of time.

Not all international trade is based in USD... especially after the USD lost so much value in the mid 2000s.

 

[kohbro]

If you decrease price, that will under no circumstances induce a large increase in demand. The term you should be using is quantity demanded.

That is not true. Depending on the price-elasticity of the goods in question, a price drop may cause a large increase in demand. Reduce the px of a Birkin by 30% and you may just get a 100% increase in demand???

 

[edutilos-]

That is not true. Depending on the price-elasticity of the goods in question, a price drop may cause a large increase in demand. Reduce the px of a Birkin by 30% and you may just get a 100% increase in demand???

He is just being very anal about the technical terms.. Which starboard has acknowledged. Did you read that post?

"Demand" per se refers to the quantities desired by consumers, while "quantity demanded" is referring to one particular quantity at a given price.

As starboard mentioned, when prices change, you shouldn't see a shift in the demand curve and thus "demand" does not change. There is however, a movement ALONG the demand curve to adjust for the change in price. Things that change "demand" include changes in the price of ALTERNATIVES (e.g. if Nikon cameras become more expensive then the demand for Canon cameras would naturally rise even without any change in the price of Canon cameras), an expectation that there will be a change in price (e.g. there are rumours that Nikon will double its prices tomorrow, so the demand for Nikon cameras jumps in anticipation since people buy preemptively to avoid the higher price tomorrow), etc.

 

[kohbro]

He is just being very anal about the technical terms.. Which starboard has acknowledged. Did you read that post?

"Demand" per se refers to the quantities desired by consumers, while "quantity demanded" is referring to one particular quantity at a given price.

As starboard mentioned, when prices change, you shouldn't see a shift in the demand curve and thus "demand" does not change. There is however, a movement ALONG the demand curve to adjust for the change in price. Things that change "demand" include changes in the price of ALTERNATIVES (e.g. if Nikon cameras become more expensive then the demand for Canon cameras would naturally rise even without any change in the price of Canon cameras), an expectation that there will be a change in price (e.g. there are rumours that Nikon will double its prices tomorrow, so the demand for Nikon cameras jumps in anticipation since people buy preemptively to avoid the higher price tomorrow), etc.

Apologies to Starboard and Candycaine, for not reading ur posts correctly. And thanks Edutilos for pointing it out and giving an example.

Yes agree that a price change will result in a movement along the demand curve and not a shift of the curve itself. Cheers!

 

[ricohflex]

Complex economic theory too deep to understand.

So, if tomorrow private developers announce an 80% reduction in the price of private condominiums, there won't be an increase in demand? Of course there will be an increase in demand. Just use your common sense.

Many consumers who were previously not in the market to buy, will now be in by the droves.

 

[spawnx]

Complex economic theory too deep to understand.

So, if tomorrow private developers announce an 80% reduction in the price of private condominiums, there won't be an increase in demand? Of course there will be an increase in demand. Just use your common sense.

Many consumers who were previously not in the market to buy, will now be in by the droves.

No, this is elementary economics.

You're referring to a layman understanding of the term 'demand'.

If price of condominiums fall, there will be a movement ALONG the 'demand curve' and hence more units sold. The 'demand' (which you refer to), rather 'demand curve', does not necessarily shift (it could).

Just use your common sense, draw the demand & supply graph.

 

[daredevil123]

I think we have enough economics lesson here. There are more to market forces than simple economics. Let's all remember that and move on.